RICHMOND, CALIFORNIA - SEPTEMBER 03: Delivery vans are parked in front of a Walmart store on September 03, 2020 in Richmond, California. Walmart has announced plans to launch Walmart Plus delivery service to compete with Amazon Prime. The $98 per year service will offer free delivery of food and items available from nearby stores. (Photo by Justin Sullivan/Getty Images)

NEW YORK (AP) — Stocks are being dragged lower Tuesday after earnings from corporate giant Walmart showed inflation is negatively impacting the American consumers’ spending power. The S&P 500 index was down 0.6% as of 9:55 a.m. Eastern. The Dow Jones Industrial Average lost 0.4% and the Nasdaq Composite was down noticeably more, falling 1%. Walmart shares dropped nearly 9% after the retail giant cut its profit outlook for the second quarter and the full year, saying rising prices on food and gas are forcing shoppers to cut back on discretionary items, particularly clothing, that carry higher profit margins.